Capitalizing Software & Cloud Costs Self Study Webinar

To help CPAs and other financial professionals understand how to properly and effectively capitalize or expense cloud computing and software costs, while making sure each are done in the proper situation.

DETAILED LEARNING OBJECTIVES

• Identify which types of software qualify as internal-use under ASC 350-40

• Distinguish between development stages and related accounting treatments under ASC 350-40

• Recognize the appropriate accounting treatment for costs incurred during the preliminary project stage

• Determine the capitalization trigger point for software developed for sale under ASC 985-20

• Apply the accounting treatment for implementation costs in hosting arrangements considered service contracts

• Identify the point at which amortization of capitalized software costs begins under ASC 350-40

• Understand the criteria that trigger capitalization under proposed ASU 2024-ED400

• Determine which post-implementation activities must be expensed under ASC 350-40

• Evaluate whether a hosting arrangement meets the criteria to apply ASC 985-20

• Classify capitalized software costs appropriately on the statement of cash flows under proposed guidance

• How to Follow FASB Standards Set in ASC 350-40
  – Hosting Arrangements
  – Cloud Computing Arrangement with License (CCAL)
  – Hosting Arrangement that is a Service Contract (HASC)
• Stages of Software Development and the Expected Costs for Each Stage
• External-Use Software Accounting Guidance
• Costs of External-Use Software to Be Sold, Leased, or Marketed
• Comparison of Costs Treatment of Internal-Use vs. External-Use Software
• Impairment of Software
• Accounting Requirements of Software–Internal-Use vs. External-Use
• Targeted Areas for Improvement to the Accounting & Disclosure of Software Costs

Steve Schwartz, Director, National Office Assurance Group, CohnReznick